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United States Economy and the Private Sector

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

A form of business with one owner which takes all the risks and earns all the profits

a)

entrepreneurship

b)

stock analyst

c)

proprietorship

d)

partnership

2.

Households typically sell which resource to businesses?

a)

entrepreneurship

b)

human resource (labor)

c)

capital resource

d)

natural resource (land)

3.

What 3 things flow continuously among households, businesses, and markets in the United States economy?

a)

goods and services

b)

money

c)

taxes

d)

resources

4.

A form of business organization which acts as a legal person (entity) regardless of the number of owners.

a)

proprietorship

b)

cooperative

c)

corporation

d)

partnership

5.

Select the two types of private financial institutions.

a)

Federal Reserve

b)

banks

c)

investment firm

d)

credit unions

6.

A form of business with 2 or 3 owners which share the risks and profits.

a)

partnership

b)

entrepreneurship

c)

corporation

d)

proprietorship

7.

A person who takes a risk to produce and sell goods and services in search of a profit.

a)

proprietor

b)

partner

c)

entrepreneur

d)

shareholder

8.

What do businesses sell to individuals, other businesses, and the government?

a)

public goods and services

b)

resources

c)

goods and services (products)

d)

income

9.

If the supply of an item is high, the price will

a)

be high

b)

be stable

c)

fluctuate

d)

be low

10.

Select the 3 reasons nations and states participate in a global economy.

a)

to buy goods and services at a lower cost

b)

to decrease employment

c)

to obtain goods they cannot produce

d)

to sell goods and services to other countries

11.

Worldwide markets in which the buying and selling of goods and services by individuals, nations, and businesses takes place.

a)

universal economy

b)

worldwide economy

c)

global economy

d)

international economy

12.

If demand for a good is high, the price will

a)

be low

b)

be high

c)

remain the same

d)

fluctuate

13.

The price of Christmas items lowers on December 26th. Why?

a)

supply is low, demand is high

b)

demand is low, supply is high

c)

supply and demand remain the same

d)

demand increases

14.

Select the 3 ways technological innovations impact the economy.

a)

allows for the global flow of information

b)

increases the global flow of goods, services, and capital.

c)

increases the cost of production

d)

lowers the cost of production

15.

As an incentive to save money, private financial institutions

a)

offer free checking accounts

b)

pay interest

c)

offer a $50.00 gift card for opening a new account

d)

offer low interest loans